In the past quarter, Rite Aid showed a modest revenue gain. Other leading chains such as Walgreen and CVS Caremark keep increasing their sales at a much higher pace because they have also been opening new stores throughout the U.S.

But this lower ratio isn't enough to make Rite Aid a purchase opportunity. For one, Rite Aid continues to hold a huge debt, which also imposes on its cash flow with high interest payments and elevated debt burden on its balance sheet. Also, the company has a $2 billion deficit equity, which also raises its financial risk. These issues will continue to impede the company's progress.

Rite Aid's management is trying to find ways to deal with these problems by relocating or closing less profitable locations and renovating stores to improve sales. In the past quarter the company closed seven stores and remodeled 105. In the past year, it closed a net of 34 stores.

For the fiscal 2015, the company estimates $26.25 billion revenue, or about a 3% sales growth year over year.

Rite Aid projects its same store sales, which are sales of stores that have been open for at least one year, to increase by 3.5%. So this means, most of the company's growth in sales is expected to come from improved sales in its existing stores.

This guidance is partly based on Rite Aid's expanded collaboration with McKesson to sell generic pharmaceuticals. Rite Aid faced timing issues with this deal which could have also contributed to the stock's fall in the past several months.